Sweden – Cherry continued strong growth and profitability in Q1By Phil - 11 May 2017
Swedish online operator Cherry continued to develop positively during the first quarter, with revenues increasing by 205 per cent to MSEK 541, of which 44 per cent were from organic growth and 161 per cent from acquisitions.
Profitability improved and EBITDA increased by 224 percent to MSEK 83, corresponding to an EBITDA margin of 15 per cent.
Anders Holmgren, CEO Cherry, said: “With a strong acquisition year behind us, the first quarter was mainly characterised by consolidation. At the same time, we grew as planned and with good profitability. Partnerships and synergies have enabled an even stronger focus on innovation, improved customer experience and continued growth.
“All business areas performed well, with a strong contribution from gaming development – Yggdrasil Gaming and performance-based marketing – Game Lounge. Online gaming-ComeOn! showed stable growth. During the quarter, we made significant investments in marketing, which affected earnings but created strong conditions for increased customer intake in the upcoming quarters. The acquisition of ComeOn! expands our portfolio of products and brands and creates good conditions for strong organic growth and continued international expansion.
“Cherry has broadened the Group’s business to cover the entire value chain within gaming. A strong organic growth and further acquisitions of entrepreneurial companies give us a unique platform to continue to create value. Overall, within Cherry we have the strengths and advantages that give us the opportunity to continue to grow faster than the market.”